Escrow

by PRIME Radar Team  June 8, 2015

Question:

Good Day Prime Phil! I've read and heard a lot of news about scams when it comes to buying your own property. As a first-timer when it comes to this, I just want to make sure that I won’t be a victim of this. I don't think I can handle or keep the documents for the house that I'm paying, but I don't want my seller to hold these as well. What do you think is the best option for me to do?

Answer:

Greetings in return! If you think you can't trust yourself or your seller when it comes to holding the documents and payments, you can ask a trusted person or institution such as banks to keep these safe. The third party is known as the Escrow which serves as the holder of the essential papers to the transaction between the buyer and seller and waits until things are settled down. For the payments, buyers can open an escrow account where he or she can put the money use for the purchase. Using an escrow protects both buyers and sellers as the transaction is on-going and to make sure that both sides meet their obligations.

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